Novo's Pain Means Sanofi Shares Gain

The FDA's recent refusal to approve Novo Nordisk's new diabetes drug puts the pricey ADRs at risk and opens the door to more profits for rival Sanofi.

The numbers are eye-popping. By 2030, roughly one in 10 adults—more than half a billion people around the world—will suffer from diabetes, creating an enormous opportunity for companies that make the drugs needed to control the disease.

But last week's revelation that the Food and Drug Administration refused to approve Novo Nordisk's (ticker: NVO) new long-acting insulin Tresiba illustrates how difficult it has become to get new diabetes drugs approved by U.S. regulators still smarting from past safety missteps. The FDA...